Investor Relations 2009 CONTENTS KUMHO ASIANA Investor Relations 2009 KUMHO ASIANA GROUP KUMHO INDUSTRIAL KUMHO PETROCHEMICAL ASIANA AIRLINES KUMHO TIRES DAEWOO E&C KOREA EXPRESS KUMHO ASIANA GROUP INVESTOR RELATIONS 2009 1. Overview 2. 2008 Business Performance 3. 2009 Business Plan 4. Appendix 䤎This document is provided for the convenience of investors and contains audited 2008 financial data that may be amended in the case of revision to the audit report. 䤎While every care has been taken to ensure the reasonableness of our estimates, 2009 prospects data is based on necessary assumptions and thus may differ from the final reported results. 1. Overview Highlights 2008 Kumho Industrial 䤎No.1 among the top 20 construction companies with the lowest accident rates (0.06%) in 2007 (Ministry of Labor, July 1) 䤎Ground breaking of Kumho Asiana Main Tower (August 31) - 8 FL. underground / 27 FL. above ground, Total floor area 18,360 pyeong Kumho Petrochemical 䤎Establishment of sales subsidiary in China for business expansion (June 1) 䤎Ground breaking of PO/PPG/CS plants in Nanjing, China (June 28) - US $113M, Annual production capacity PO 80,000 tons, PPG 50,000 tons, CS 100,000 tons 䤎Establishment of XPS China J/V company - US $29.2M, XPS Annual production capacity 12,800 tons 䤎Construction of the 2nd Combined Heat and Power Plant - KRW 216 billion, 500T/H, 119MWH Asiana Airlines 䤎Invested in Air Busan (February) and launched Gimpo~Busan, Busan~Jeju routes (October 27) 䤎Delisted from KOSDAQ and listed on KOSPI (March 28) 䤎Launched Paris-Incheon route (March 31) 䤎Introduced new aircrafts : Total 6 aircrafts introduced inc. A320-200 (Total 68 aircrafts) 䤎Received ‘ATW, Airline of the Year’ Award (January 2009) Kumho Tires 䤎Groundbreaking of Binh Duong plant, Vietnam (March 5) - US $199M, Annual production capacity 3.15 million tires 䤎Opened the first ‘Tire Pro’ Flagship store, a retail brand in Shanghai, China (April 11) 䤎Groundbreaking of TBR plant in Nanjing, China (November 7) - US $100M, Annual production capacity 0.3 million tires 䤎Newly built a warehouse in New Jersey (November 17) - Boost sales in Northeast region (Loadage : 0.2 million tires) 䤎Groundbreaking of Tianjin plant 2nd phase, China (December 31) - US $453M, annual production capacity 13 million tires Daewoo E&C 䤎No.1 in 2008 Construction Capability Evaluation for three consecutive years (Ministry of Land, Transport and Maritime Affairs, Announced on July 31) 䤎Underwater construction of tunnel parts for GK Fixed Link (June 17) Korea Express 䤎Became an affiliated company of Kumho Asiana Group (April 1) : Securing a growth engine for the Group transportation/distribution business 䤎Integrated operations of Korea Integrated Freight Terminal, KECI and Airport Development (May 1) 䤎Responsible for the Group distribution, Maximizing synergy 䤎Started inland transportation business in China (October 8) : Shanghai® Wuxi, Tianjin® Beijing, Hong Kong® Shenzhen 䤎Maximized car rental business synergy through acquisition of business unit of Kumho Rent-A-Car (December 13) 2 Investor Relations 2009 KUMHO ASIANA 1. Overview History Group History 2006 ~ 2009 䤎Establish a foundation for stability and growth Group’s 60th 2008 䤎Building a foundation for a 500-year period of sustainable Anniversary growth - Setting up a basis for a takeoff towards general logistics group (Acquisition of Korea Express) 2007 䤎Aiming for the top 2006 䤎Stability and drive for the future (Group’s 60th anniversary) - Selection and focus - New growth engines (Acquisition of Daewoo E&C) 2001 ~ 2005 2005 䤎Springboard for further growth Springboard for (Expansion of tire, construction, transportation and service Further Growth businesses) Listing Kumho Tires in London and Seoul 2004 䤎Launch of logistics business (KIFT and HIFT become affiliates of the Group) 2003 䤎Restructuring completed - Disposal of divisions and assets, strengthening of business operations - Debt restructuring, improvement in debt ratio 1990 1991 䤎Institution of global management system Globalization - J/V established with express bus service providers in China - Establishment of Nanjing Kumho Tires, etc. 1990 䤎Establishment of Kumho Rent-A-Car 1980 1988 䤎Establishment of Asiana Airlines Company 1986 䤎Establishment of chemical J/V including Kumho Polychem Reorganization 1984 䤎Completed the first round of restructuring 1970 1977 䤎Establishment of Kumho Asiana Cultural Foundation Period of 1970 䤎Establishment of Kumho Petrochemical, Growth entered construction and finance businesses 1960 1960 䤎Establishment of Kumho Tires Setting the Base for Development 1946~1950 1959 䤎Establishment of Jookho Academy, an educational foundation Establishment 1949 䤎Establishment of Kumho Express of Business 1946 䤎Establishment of Gwangju Taxi Corporation KUMHO ASIANA Investor Relations 2009 3 1. Overview Group Overview Group Size 䤎Recording respectable results and maintaining balanced sales volume & assets size for each division Chemicals/Tires 21.4% Transportation/ Chemicals/Tires 29.8% Logistics/Service Transportation/ 31.8% Sales Logistics/Service Assets (2008) 40.4% (2008) Construction 38.2% Construction 38.4% Major Affiliates by Business Chemicals/Tires Construction Transportation/Logistics/Service 䤎Kumho Petrochemical 䤎Kumho Industrial 䤎Kumho Industrial 䤎Kumho Tires (Construction Division) (Express Bus Division) 䤎Kumho P&B Chemicals 䤎Daewoo E&C 䤎Asiana Airlines 䤎Kumho Mitsui 䤎Kumho Steel Tech 䤎Korea Express Chemicals 䤎Asiana IDT 䤎Kumho Polychem 䤎AAS Airport 䤎Kumho Trading 䤎Incheon Airport Energy 䤎Kumho Resort 䤎Kumho Industrial converted into a holding company : January 1, 2007 䤎Kumho Asiana Group Affiliates : 48 companies (As of March, 2009) (Unit : KRW 100 million) Assets 1.5 folds Sales 1.3 folds Assets 1.1 folds Assets : 371,481 Sales 1.1 folds Sales : 231,844 Assets : 246,898 Sales : 182,344 Assets : 224,914 Sales : 163,560 2006 2007 2008 4 Investor Relations 2009 KUMHO ASIANA 1. Overview Group Overview Business Profile Established in 1970, Kumho Petrochemical develops Kumho synthetic rubbers, synthetic resins, specialty chemicals, Petrochemical combined heat and power plants and electronic chemicals Established in 1960, Kumho Tires is the world top 10 tire Chemicals/Tires Kumho Tires producer based on continuous investments, R&D activities and a strong overseas network, exporting tires to 180 countries Kumho P&B Chemicals is an overseas J/V company with Kumho P&B Nippon Steel Chemical in Japan, producing industrial raw Chemicals materials such as phenol, acetone, MIBK, BPA, epoxy Kumho Established in 1967, the division became one of the top Industrial domestic constructors, exhibiting capabilities for 40 years (Construction period in various fields such as apartments, civil engineering, Division) architecture, SOC, plants and environmental business Construction Established in 1973, Daewoo E&C offers the best technology and quality for diverse industries and living facilities including Daewoo E&C overseas civil engineering, construction, plant and housing for 30 years period Kumho Entering the transportation industry in 1946 with only two Industrial taxies, Express Bus division is the root of Kumho Asiana, (Express Bus Division) constantly providing transportation service to passengers Entering the industry in 1988 as a second civil aviation airline in Korea, Asiana Airlines is a representative of airline industry Asiana Airlines in Korea and Asia providing convenient schedule and unique service to customers Since the foundation, Korea Express is No.1 in logistics business, operating in general logistics businesses such as Transportation/ Korea Express TPL, stevedoring, international logistics, parcel deliveries and Logistics/Service car rentals Kumho provides superior car rental services based on (Kumho) affiliation with the world largest car rental company, Hertz. Car Rental In Korea, Kumho currently possesses 39,000 rental cars in Business 140 networks and is No.1 in car rental business Kumho Resort, a general leisure company engaged in resort Kumho Resort business, operates theme parks, domestic & overseas golf courses and hotel businesses KUMHO ASIANA Investor Relations 2009 5 1. Overview Group Overview Top-Tier Companies Establishing Market Presence Company Field Ranking Market Share Competitors Daewoo E&C Construction 1 KRW 8,927.2 billion Samsung C&T Corp (No.2) Kumho Industrial Construction 13 KRW 1,933.2 billion KRW 7,733.8 billion (Construction) Construction KRW 10,860.4 billion Total Hyundai Express (No.2), Parcel Delivery 1 160 million parcels 140 million parcels Stevedoring 1 15.1% Hanjin (No.2) 9.0% Korea Express Transportation 1 34.0% Dongbu (No.2) 19.9% Kumho Rent-A-Car 49,316 vehicles Ajoo Auto Rental (No.2) 1 (Authorized Rent Cars) (24.5%) 32,968 cars Kumho Synthetic Rubber 1 (World) 70%(Domestic) LG Chem (No.2) 25.0% Petrochemical (SBR/BR) Kumho Industrial Dongyang Express (19.3%) Transportation 1 39.6% (Express Bus) Joongang Express (15.6%) Kumho 1 (Domestic) EPDM Rubber 72.3% SK Energy (35,000MT) Polychem 8 (World) 1 (Domestic) Phenol 67.0% LG Chem (No.2) 33.0% Kumho P&B 8 (World) Chemicals 1 (Domestic) BPA 34.0% LG Chem 41.0% 7 (World) Domestic Air Passenger Korean Air (58.1%), Asiana Airlines 2 32.2% Transportation Others (9.6%) OEM 2 40.5% Hankook Tire Kumho Tires REM 2 40.8% Hankook Tire Ref : 2008 Basis 6 Investor Relations 2009 KUMHO ASIANA 2. 2008 Business Performance 2008 Group Performance Sales KRW 23.2 trillion, operating profit nearly KRW 1 trillion, Total assets KRW 37.1 trillion and debt ratio 170.0% 䤎Sales 䤎Assets